Performance Related Pay System – Advantages and Disadvantages: Polish perspective Wojciech Zieliński Deputy Director Civil Service Department.

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Presentation transcript:

Performance Related Pay System – Advantages and Disadvantages: Polish perspective Wojciech Zieliński Deputy Director Civil Service Department

Pros and cons of PRP Links rewards to objectives Stimulates efficiency Awarding achievements Difficulties in measuring performance May be subjective Focuses more on outputs than on quality Prejudicial to teamwork Difficult to be managed well Demotivation in a longer term

Specificity of public administration „Are civil servants different?” Public service motivation Measurability of results Responsibility for results Scope of civil service (core government vs. broader scope)

PRP in Poland A very narrow scope of civil service in Poland – only core government

Remuneration budget of the civil service in Poland Components of remuneration Data for 2011.

PRP in Poland Head of the Civil Service issued guidelines on HRM standards, that include, among others guidelines on reward distribution. What is recommended: criteria –establishing criteria for award distribution, –various forms –various forms of rewards, for example for: mentoring, team work, conducting internal trainings, based on periodic feedback –awards based on periodic feedback on employees` performance, –justification –justification of individual rewards, –varying the level –varying the level of awards.

PRP in practice The only real example of PRP in the Polish civil service are bonuses for tax collectors, who are entitled to a bonus, based on: –collected debts, or –activities undertaken in order to collect debts. Bonuses are calculated as a percentage of: –collected debts, –minimal salary.

Summing up There are pros and cons of PRP Using PRP in core government is questionable „Overall the body of evidence paints a supportive picture of performance pay in craft jobs within the public sector, but less so for coping jobs.” – from a World Bank paper on: „PRP in Public Sector. A Review of Theory and Evidence”.

Thank you for your attention